Fellow Guyanese,
Today I want to speak about something that matters at every kitchen table: the cost of feeding a family.
Eggs, chicken, beef and mutton are important sources of protein. They are also important sources of income for our farmers. But too many families are finding that these basic foods take up too much of their weekly budget.
We must bring prices down without weakening the people who produce our food. That is the balance we intend to achieve.
Our approach will be based on a simple principle: cheaper food must not come from squeezing the farmer. It must come from taking unnecessary costs out of the system and producing more.
Today, purchasing is often fragmented. A school buys separately – and I use government as an example. A hospital buys separately. A retailer negotiates separately. Farmers produce without always knowing the volume the market will require, and the buyers often do not know with certainty what will be available, when it will arrive or at what price.
This uncertainty creates waste, weakens bargaining power and raises financing, storage and transportation costs. In the end, the consumer pays, because when you have wastage, it has to be passed on somewhere.
We will establish a coordinated purchasing system for eggs, chicken, beef and mutton as a pilot. The system will pool demand from public institutions and allow interested wholesalers and retailers to participate instead of many small orders moving through different channels. We will create larger and more predictable orders, clear quality standards, firm delivery schedules and better prices.
We will be creating through this mechanism an even playing field. No big supplier, no individual and no group will get licenses while the retailers are placed with a different circumstance. There will be evenness across the board, that is why all of you are here today.
Let me be clear about what this means. Government is not taking over farms. Government is not taking over shops. Producers will remain free to sell outside the programme and retailers will remain free to purchase through their normal channels.
The new system will be voluntary, open and transparent. But we are going to publish all those who will be part of this system and the maximum retail price that we all agree on so that consumers know where to find you. Its purpose is to use scale and planning to reduce costs.
Through bulk purchasing, we can negotiate better prices for feed, veterinary supplies, chicks, breeding stock, packaging, refrigeration and transportation. We can reduce the number of empty trucks moving across the country. We can limit spoilage and give farmers clearer information about demand before they invest.
Participating buyers will also have greater confidence that the required quantity and quality will be delivered.
The government, private sector and producers working together will begin by consolidating the demand across the country. That demand will be published in advance. Farmers, cooperatives, processors and consortiums will know the quantities required, the delivery periods and the standards they must meet.
Retailers that choose to participate will benefit from the negotiated wholesale price, but they must pass that saving to consumers.
Participating retailers will agree to transparent maximum mark-ups, display the programme price clearly and report the quantities sold. We will publish a regular price dashboard so the public can see the wholesale price, the retail price and the savings delivered in each region.
For producers, contracts will not be awarded simply to whoever offers the lowest price on one particular day. Prices will reflect verified and efficient production costs, quality and reliable delivery.
Where appropriate, multi-cycle purchase commitments will give farmers the confidence to expand without leaving them exposed when feed, fuel or other input costs move sharply.
We will also insist on prompt payment. A farmer should not deliver eggs, meat or poultry and then wait months to be paid. Delayed payments force producers to borrow at high costs which we are also going to try to fix. Because through this mechanism that we’re negotiating with the banks, we want the banks to be able to establish a line of credit; a 30-day line of credit at four percent. Right now, that line of credit is available at six, seven, eight and nine percent.
The system will, therefore, establish firm payment deadlines and track whether those deadlines are met. Retailers that participate will enter a clear pass-through the agreement. If the purchasing platform lowers the wholesale cost, the consumer must see that reduction on the shelf.
Participating outlets will display the agreed prices and the government and private sector will publish a regular price dashboard, showing farmgate wholesale and retail prices. This will allow the public to see whether costs are rising and whether the benefits of bulk purchasing are reducing costs at the household level.
Egg and chicken production can expand relatively quickly if farmers have reliable access to feed, chicks, veterinary services, working capital and markets. Beef and mutton require a longer planning horizon. We must improve breeding pasture. Drainage, animal health, finishing systems, slaughtering capacity, cold storage, and transportation. The government will, therefore, work with producers to prepare production agreements for each commodity.
These agreements will set realistic targets for output, broiler cycles, cattle finishing, and sheep production, as Dr. Walrond said, supporting you in those feedlots.
They will identify the financing, land, feed, veterinary, and infrastructure requirements needed to meet those targets. We’ll support investment in feed production so that livestock farmers are less exposed to imported costs. We’ll improve access to affordable finance for poultry houses, pens, pasture development, refrigeration, processing, and delivery vehicles.
We will also strengthen lab traceability and food safety systems so that consumers receive wholesome products and our producers can enter larger regional markets.
The policy will protect competition; centralised purchasing must never become a closed arrangement controlled by one buyer, one processor, or one small group of suppliers. Multiple producers and processors will be eligible to participate. Imports will not be used carelessly to undermine local farmers.
If a temporary supply gap emerges, any import decision will follow a published assessment of local production, inventories and expected demand. Imports where necessary will be a short bridge while local production expands, not a permanent substitute for Guyanese production.
And we’re going to establish three-month supply levels, so we always have a buffer. Producers must commit to higher output, consistent quality and reliable delivery. Retailers must pass lower costs to consumers. Banks must provide financing that matches agricultural production cycles. Government must provide fair rules, infrastructure, veterinary support, market information and transparent procurement. Consumers must be able to see the results.
We will measure this programme by what happens in the market. How much production rises, how much waste falls, how quickly farmers are paid and most importantly, what families pay for eggs, chicken, beef and mutton in this first phase of pilot.
This is not a plan to choose between farmers and consumers. Our farmers need fair and predictable returns. Our families need affordable food. With better purchasing power, low input costs, stronger production and honest competition, we can deliver both.
We need the middlemen to understand that they are not there to extract maximum wealth, but they are facilitator of a fair market price. We will build a food system in which farmers can invest with confidence, retailers can plan with certainty, and consumers can buy essential protein at a fair price. That is the partnership we are launching, and that is the result we intend to deliver.
Thank you, all Guyanese, all our producers, retailers, suppliers, wholesalers. Thank you. May God bless our farmers, our families, and our country.
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DPI
